Chemist Warehouse bosses to remain on board after reverse listing
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The news: Chemist Warehouse founders Jack Gance and Mario Verrochi will remain on the board when the company announces its much anticipated plans for a back door listing through Sigma Healthcare on Monday, according to the AFR.
The numbers: The $5 billion chemist retailer entered into a $3 billion supply deal with Sigma in August, and last week was reported to be raising $350 million to support a reverse listing on the ASX. Chemist Warehouse already has a 13.5% stake in Sigma.
When news of the back door listing broke last week, Sigma requested a trading halt and has since stated that a voluntary suspension of trading is to remain in place until the deal is announced on Monday 11 December.
The context: Chemist Warehouse has been looking for an avenue to float for years, and appears to have found its listing strategy through Sigma, one of Australia’s largest pharmaceutical wholesalers.
The AFR reported that neither Gance nor Verrochi would be named chairman post-merger. Instead, Sigma’s chairman Michael Sammells will remain in the position. Sigma’s chief executive Vikesh Ramsunder will also remain in place.
The source: AFR
